Contribution Margin: The Profit Metric Most Businesses Misunderstand
Most businesses believe they understand profitability. They track revenue, watch gross margin, and celebrate top-line growth. Yet many still struggle with cash pressure, weak inventory performance, and growth that feels harder than it should be. The disconnect often comes down to one misunderstood metric: contribution margin.
Contribution margin is not an accounting abstraction. It is a decision metric. It tells you what actually happens after a sale occurs and before fixed costs enter...









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